IntroductionCryptocurrencies are a hot topic for friend and foe. Ever since this phenomenon came to the fore through the rise of Bitcoin, all stakeholders in the financial industry (banks, regulators, merchants, users and entrepreneurs) have been struggling to get to grips with it. Is it money, an asset or technology? Or is it something we haven’t seen before, a category unto itself, like the Internet back in the early nineties? As with the early Internet, opinions are divided as to whether it is here to stay.

The team at Innopay has been closely following the development of cryptocurrencies since 2010, recognizing the disruptive potential of this technology. Bitcoin has clearly gained traction in the meanwhile and other ‘altcoins’ appeared. We became used to new words such as ‘mining’, ‘cold storage’ and ‘block chain’.

Reading guideThis report consists of three parts. The first part consists of the aforementioned interviews from the different stakeholder groups. In the first three interviews payment and financial services experts provide a broad perspective on society, economy and payments in general, and the function cryptocurrency might fulfil. This is followed by the second set of interviews with entrepreneurs currently leading cryptocurrency companies. The entrepreneurs bring the hands--‐on experience with doing business in the world of Bitcoin. After the entrepreneurs, in the third set of the interviews professionals involved in government and governance share their opinions and elaborate on what function regulation fulfils or will fulfil for cryptocurrencies. The interview section is followed by the second part of this report: a summation of the conclusions that can be drawn out of these various insights. In the third and final part of the report, we reflect on the cryptocurrency and payments landscape and recommend ways forward for the three angles: regulation, payment providers and entrepreneurs. The appendixes at the end of the report provide a glossary explaining the terminology used throughout the cryptocurrency sphere as well as a reference section with links to further reading material.